Asked by Riski Prasetyo Putro on Jul 26, 2024

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Which equity index had the lowest volatility in terms of U.S. dollar-denominated returns for the period of five years ending in 2018?

A) Korea
B) Swiss
C) Toronto
D) Nikkei

Lowest Volatility

The condition of experiencing the smallest degree of variation in price over a specified period, often sought after in stable investment options.

U.S. Dollar-Denominated Returns

The gains or losses on an investment reported in U.S. dollars, regardless of the currency of the initial investment.

  • Acknowledge the basic principles of risk and return in foreign portfolios, with a focus on the benefits of diversification and the influences of currency exchange.
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SM
Spencer MacmasterAug 01, 2024
Final Answer :
B
Explanation :
The Swiss equity index typically exhibits lower volatility in comparison to other major equity indices. This is attributed to the stability of the Swiss economy, the strong financial system, and the presence of large multinational corporations in the index, which tend to be less volatile.